The following relates to video surveillance and verification systems. It finds specific application in conjunction with the video surveillance and verification of point of sale transactions (POS) in the retail environments and would be described with a particular reference thereto. However, it is to be appreciated that the following is also applicable to the video surveillance and verification of point of sale transactions, and other transactions in health care facilities, restaurants, and the like.
Employee theft is one of the largest components of retail inventory shrink. Employee theft leads to losses of approximately $17.8 billion annually. For many of the retail stores operating today in the United States, such loss might mean the difference between being profitable and failure. Therefore, many retailers are trying to eliminate the inventory shrink to increase overall company profitability.
Most current technologies are either easily bypassed by a knowledgeable employee or require too much personnel time to review potential fraud. For example, passive electronic devices attached to the theft-prone items in retail stores to trigger an alarm might be deactivated by an employee before the item leaves the store. Moreover, the passive electronic devices are ineffective in detecting internal theft such as cash fraudulent activities.
One solution is to monitor and scrutinize every sales transaction. However, it is nearly impossible in large retail chains and puts a heavy load on managers, accountants, and loss prevention professionals.
Another solution is to provide employee training programs geared toward loss prevention to help employees to better understand transaction rules. For example, anonymous tip lines might help employees to report dishonest co-workers. However, this solution does not entirely eliminate retail theft. The loss might still occur and might be difficult to recover.
Another solution is to use an exception-based reporting software. Such software mines POS data from the cash registers for inconsistencies in associate transactions. A designated professional may run reports and queries from the mined data to detect potential fraudulent activity at the stores. Because evidence must be collected and reviewed to determine a fraudulent pattern, theft detection or intervention might take days or even weeks. In the meantime, a high number of the activities under investigation might be determined to be legitimate, making this method costly and time consuming. In addition, as exception-based reporting tools work with the data provided by the POS terminal, the POS data might be manipulated by an unauthorized person and, thus, might become inaccurate.
Another solution is to monitor the POS terminal with a video surveillance system to capture the activity around the POS terminal. This allows employers to keep a permanent visual record of the activities which might be used as evidence against stealing employees. One drawback of the video surveillance systems is the production of enormous volumes of data. It might be difficult to monitor the POS terminals in real-time to detect fraudulent activities. In addition, it might be impractical to transmit, store, and manage video data of multiple transactions at multiple stores.